TechFlow news, November 21 — According to an official announcement, the UK's Serious Fraud Office (SFO) announced on Thursday that it is investigating the collapsed crypto project Basis Markets, which abruptly shut down in late 2021 after raising approximately $28 million through NFT membership sales and token offerings. Investigators have executed search warrants in London and West Yorkshire, arrested two men, and seized digital devices and documents.
The SFO stated that Basis Markets had promised investors low-risk returns, but by June 2022, investors were informed that "due to newly proposed US regulations, the project could not proceed as planned." Investigations suggest that funds may have been transferred directly into personal wallets controlled by the anonymous team.
Nick Ephgrave, Director of the SFO, said: "With our growing capabilities in cryptocurrency investigations, we are determined to hold accountable anyone who attempts to defraud investors using cryptocurrency." The BASIS token dropped nearly 40% following the UK authorities' announcement of the investigation.
